An ASX in revolution. Via Getty
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Local markets surged into record territory on Monday, pushing through the 8,000 threshold as traders played catch up to Wall Street’s rotation into underperforming growth stocks and blue chips.
By the close the S&P/ASX200 had trimmed some of those gains, levelling out ahead by 58.30 points or 0.73% to 8,017.60.
Australia’s biggest companies were behind a little afternoon delight on Monday as traders trimmed their easy gains.
Naturally the Commonwealth Bank (ASX:CBA) is not done with monstering its way over BHP (ASX:BHP), which the bank eclipsed on Friday to become the biggest company by market cap in the country.
But the bourse’s biggest names – like CBA, CSL (ASX:CSL) and BHP – all hit reverse on Monday arvo, having shot ahead in morning trade, driven the ASX to fresh thresholds and then clocking off early.
Still, by the closing bell, all of the big 4 banks plus Macquarie were higher, as were the iron ore triumvirate, Fortescue the strongest with near 2% and Rio Tinto lagging behind with about 0.1% after rising more than 1%.
Still, the rising Aussie benchmark should hit 2025 at 8,250 points, according to friend of the show, Betashares chief economist David Bassanese.
“Being relatively cheap and unloved, the Australian market could become part of the ‘great rotation’ if global investors start to seek opportunities outside of US large cap technology stocks such as Nvidia,” David says.
Certainly the ASX200 just stormed the Bastille on Monday. Just 24 hours after the French annually celebrate July 14, 1789, when many frustrated and cheese-hungry Parisiens stormed the Bastille fortress and prison, letting all the crazies out of the asylum and heading off to start the French Revolution which they confused, ultimately, with sitting around chopping each other’s heads off.
And it wasn’t just ASX gains of a broad-based nature to marvel at through Monday – the sonambulant Aussie dollar pushed past recent six-month highs on Monday – thanks to the one, two combo of: the RBA’s hawkish stance on interest rates compared to the Fed, robust commodity prices, and signs of stabilisation in China’s economic growth outlook.
The AUD is up around US67.7c and there’s only Thursday’s jobless data or more of the scary stuff out of the US elections and the big week of China news to derail things.
Among equities the growth companies, small caps and rate sensitive stocks led gains.
Among the IT and Telco names Seek (ASX:SEK) added 3% while WiseTech Global (ASX:WTC) added another 2%.
On the consumer and healthcare side, Telix Pharmaceuticals (ASX:TLX) and Bunnings owner Wesfarmers (ASX:WES) gained more than 2.5% a piece.
On the lithium front, there’s still a long way to go, but Core Lithium (ASX:CXO) has jumped almost 10% after last week’s positive exploration update and the news it’s exceeded FY 2024 production guidance with production of 95,020 dry metric tonnes of spodumene concentrate.
CXO says that has delivered a cash balance of $87.6mn as of June end.
Two names that didn’t enjoy Monday trade:
Land lease operator Lifestyle Communities (ASX:LIC) where the shares have crashed 15% following a, let’s say, highly unflattering ABC news documentary.
And Aussie Broadband (ASX:ABB), punished for doing great, but not as great as traders were led to believe.
And Piche Resources (ASX: PR2) a mineral exploration company intent on uranium and gold in WA and Argentina, hit the trading floor on the ASX today, at 10:00am in faraway Western Australia time.
Listing under the ticker code PR2, the initial public offering (IPO) hauled in a total of $10mn (before costs) at $0.20 a pop, reportedly garnering an “excellent register of international & Australian funds, and high net worth and retail investors.”
It’s down around 22%.
Looks like persistent local inflation will ensure the local punters continue to keep an eye on any monetary policy prognosticating from the Reserve Bank of Australia (RBA) as expectations Martin Pl. will come on behind its global peers most of whom look set to begin their rate-cutting cycles sooner rather than later.
That’s been good for the Aussie dollar.
The Aussie dollar rallied to 67.7 US cents for the first time since early January. But Morgan Stanley says investors should embrace for a structurally higher Australian dollar for FY25, which will result in meaningful headwinds for overseas earners.
Local IT stocks, exporters, small caps, materials and metals, rate sensitive and pretty much all other unloved ASX names are potential beneficiaries of the rotation out of mega tech in the US.
Actually, the ASX Small Ordinaries (XSO) index and ASX Emerging Companies (XEC) index ended flat after several big sessions.
Over the past five days, the index has gained 2.5% and is currently 0.25% off of its 1 year high.
11 of the 11 ASX sectors were higher at the close. Messrs Information Technology, Consumer Discretionary, Healthcare and the Telco’s out front.
But in the end Monday was for everyone. A nice day to watch markets in various shades of British Racing green.
So. China’s economic growth fell to its worst pace in five quarters, and they weren’t good quarters, either.
This probably won’t generate enough pressure on Beijing to do something stimulatory at this week’s big wig throw down of a twice-a-decade Third Plenum policy on Monday.
The Chinese economy expanded 4.7% yoy in Q2 of 2024, missing market forecasts of 5.1% and slowing from a 5.3% growth in Q1.
It was the weakest yearly advance since Q1 of 2023, amid a persistent property downturn, weak domestic demand, falling yuan, and trade frictions with the West.
In June, retail sales rose the least in nearly 18 months – not great months neither – while industrial output growth was at a three-month low, data released by China’s National Bureau of Statistics showed on Monday. That missed the median estimate of 5.1% in Bloomberg’s handy survey of unnamed economists.
Finally, Donald Trump is alive and traders are already looking ahead to Monday’s second-quarter earnings reports – the trigger, ahem, the catalyst for any extension of these terrifying market’ highs.
Here are the best-performing ASX small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| 1TT | Thrive Tribe Tech | 0.003 | 50% | 21,741,298 | $941,243 |
| APC | Aust Potash Ltd | 0.002 | 50% | 1,014,500 | $4,020,189 |
| AVE | Avecho Biotech Ltd | 0.003 | 50% | 1,509,724 | $6,338,594 |
| ARN | Aldoro Resources | 0.105 | 48% | 4,911,568 | $9,558,286 |
| MDI | Middle Island Res | 0.024 | 41% | 8,091,654 | $3,703,518 |
| DOU | Douugh Limited | 0.004 | 33% | 59,518 | $3,246,207 |
| RFT | Rectifier Technolog | 0.008 | 33% | 1,924,782 | $8,291,904 |
| SFG | Seafarms Group Ltd | 0.004 | 33% | 1,280,372 | $14,509,798 |
| TIG | Tigers Realm Coal | 0.004 | 33% | 1,708,240 | $39,200,107 |
| RWD | Reward Minerals Ltd | 0.060 | 33% | 45,412 | $10,253,391 |
| MXO | Motio Ltd | 0.022 | 29% | 7,464,578 | $4,559,372 |
| AI1 | Adisyn Ltd | 0.035 | 25% | 3,887,727 | $5,183,696 |
| RGL | Riversgold | 0.008 | 25% | 31,486,232 | $7,257,461 |
| SNS | Sensen Networks Ltd | 0.025 | 25% | 24,250 | $15,558,175 |
| EEL | Enrg Elements Ltd | 0.003 | 25% | 79,570 | $2,019,930 |
| HLX | Helix Resources | 0.003 | 25% | 933,333 | $6,528,387 |
| LPD | Lepidico Ltd | 0.003 | 25% | 717,282 | $17,178,239 |
| MCT | Metalicity Limited | 0.003 | 25% | 15,245,631 | $8,971,705 |
| VRC | Volt Resources Ltd | 0.005 | 25% | 5,844,937 | $16,634,713 |
| ICR | Intelicare Holdings | 0.021 | 24% | 905,887 | $4,946,994 |
| 3DP | Pointerra Limited | 0.077 | 22% | 8,886,605 | $50,719,838 |
| I88 | Infini Resources Ltd | 0.900 | 22% | 3,002,549 | $28,107,661 |
| GIB | Gibb River Diamonds | 0.045 | 22% | 45,000 | $7,825,849 |
| HCT | Holista CollTech Ltd | 0.006 | 20% | 36,504 | $1,394,000 |
| CY5 | Cygnus Metals Ltd | 0.051 | 19% | 1,989,865 | $12,614,443 |
Aldoro Resources (ASX:ARN) reports fresh metallurgical test work has returned open cycle niobium recovery level of 62.4% “on a selected Kameelburg sample”.
Those are numbers in line with recovery levels by developing mining explorers and producers in the global niobium space. Good news.
ARN says the processes resulted in an upgrade of the head feed of 0.74% Nb2O5 to 5.5% Nb2O5, “a multiple of 10.6 times with a 62.4% recovery rate of Nb2O5.” The digger says recovery rate and upgrade values are considered encouraging in the initial test phase.
“The forward process will focus on a finer grind and micro floatation to increase the grade and recovery further.”
Our Cam Drummond says, if this stock wasn’t on your niobium radar, its 54% morning bump in stock price this morning “could make you sit up and take notice.”
The explorer says the results have boosted its confidence ahead of maiden drilling that’s targeting rich niobium dykes across the tenure.
Prep for a diamond drill rig and relevant personnel are advancing, with the initial drill program targeted to commence at the end of Q3, subject to regulatory approvals.
Shares went galactic on the news, up 54.9% to be this morning’s biggest riser and is trading at 11c.
Metalicity (ASX:MCT) is out at the Yundamindra Gold Project, located 65 kms south east of Leonora and 65 kms east of Kookynie where assays from the recent RC drilling programme have been returned with multiple impressive gold intersections and high grades.
Significant intercepts include: [email protected]/tAu from 28m, and [email protected]/t Au.
Importantly, MCT says mineralised intercepts correlate with historical drill intercepts, providing validation and encouragement for further drilling and potential resource estimation.
Adisyn (ASX:AI1) says it’s gone in for a binding collaboration agreement with 2D Generaton Ltd – is a global semiconductor IP business incorporated in Israel with close ties to – among others – NVIDIA.
Just say the name and the investors pile in.
Be that as it may, AI1 reports the the partnership aims to “generate transformational opportunities in the AI space”.
“Leveraging Adisyn’s expertise in data centre management, managed IT services, and cybersecurity, alongside 2D Generation’s industry-leading
capabilities in developing next-generation AI semiconductor solutions.
The Lithium hunter Dynamic Metals (ASX:DYM) farm-out JV of Widgiemooltha with Mineral Resources (ASX:MIN) has started to bear fruit after pre-conditions were satisfied and the latter coughed up a $4m payment.
The deal, etched in March, gives MIN a 40% share in the lithium rights of the project (after a further $1m payment next year), which will bump up to 65% as long as it spends $15m on exploration within the next four years.
While DYM has been searching the tenements for nickel prospectivity of late, MinRes is expected to start hitting the ground shortly to further prove up identified lithium targets.
Attura (ASX:ATA)
IT firms Atturra is rising as well after agreement to acquire Exent Holdings for $6mn in upfront consideration with earn-out/post-completion consideration of up to $2mn cash. ATA says it’s a strategically aligned acquisition which helps to extend ATA’s advisory and consulting network.
ATA also says FY24 revenue is expected to exceed $240 million, a 35% increase from the previous year. The company anticipates an underlying EBITDA of $25-$26 million, up 19% on pcp.
There’s been some 40 new federal government contracts, including ones with the Departments of Defence, Home Affairs, and Treasury, which boosted performance.
And finally, the local penny stock Middle Island Resources (ASX:MDI) announced on Friday a massive leg up from NT government – circa $300,000 for a drilling collab at its Barkly IOCG project near Tennant Creek.
Three diamond holes are being funded at the Wilma, Pebbles and Dino prospects which are targeted for copper, gold and base metals mineralisation from analysing geophysical data back in April.
“With these grants, MDI is now set to commence drilling planning for the 2024 season,” MDI CEO Roland Bartsch said.
“MDI is delighted to have again been awarded collaboration grants under the NT Government’s Resourcing the Territory program.
“This is a competitive program, and to be the only company to have received the maximum grant allowed is an endorsement of the concepts and targets developed by the team’s systematic approach.”
Shares were up over 23% earlier.
Here are the least performing ASX small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| 1TT | Thrive Tribe Tech | 0.002 | -50% | 7,590,306 | $1,882,486 |
| VPR | Voltgroupltd | 0.001 | -50% | 11,883 | $21,432,416 |
| SIH | Sihayo Gold Limited | 0.002 | -33% | 208,000 | $36,612,769 |
| DRO | Droneshield Limited | 1.860 | -28% | 42,865,485 | $1,982,631,014 |
| EXL | Elixinol Wellness | 0.003 | -25% | 158,809 | $5,284,729 |
| OAR | OAR Resources Ltd | 0.002 | -25% | 67,500 | $6,444,200 |
| SFG | Seafarms Group Ltd | 0.003 | -25% | 94,913 | $19,346,397 |
| TKL | Traka Resources | 0.002 | -25% | 130,000 | $3,501,317 |
| AEV | Avenira Limited | 0.005 | -25% | 1,579,830 | $14,094,204 |
| S66 | Star Combo | 0.110 | -24% | 20,000 | $19,587,032 |
| AGH | Althea Group | 0.023 | -23% | 2,408,077 | $12,159,973 |
| XGL | Xamble Group Limited | 0.020 | -23% | 62,499 | $7,700,085 |
| MXO | Motio Ltd | 0.017 | -23% | 993,051 | $5,900,364 |
| FAL | Falconmetalsltd | 0.240 | -21% | 750,240 | $53,985,000 |
| ADD | Adavale Resource Ltd | 0.004 | -20% | 2,005,002 | $5,326,327 |
| HLX | Helix Resources | 0.002 | -20% | 200,000 | $8,160,484 |
| IVX | Invion Ltd | 0.004 | -20% | 9,876 | $33,022,661 |
| LPD | Lepidico Ltd | 0.002 | -20% | 1,946,900 | $21,472,798 |
| MRQ | Mrg Metals Limited | 0.004 | -20% | 4,292,500 | $13,557,593 |
| RML | Resolution Minerals | 0.002 | -20% | 415,200 | $4,025,055 |
| RNE | Renu Energy Ltd | 0.004 | -20% | 3,005 | $3,630,670 |
| AUG | Augustus Minerals | 0.077 | -17% | 5,184,106 | $7,939,410 |
| AMD | Arrow Minerals | 0.003 | -17% | 5,886,198 | $31,618,095 |
| AVE | Avecho Biotech Ltd | 0.003 | -17% | 1,169,015 | $9,507,891 |
Arizona Lithium (ASX:AZL) has discovered lithium brines in the deeper Souris River Formation at its Prairie project that has never been tested until now. Samples of up to 86 mg/L lithium indicate that the new formation could add to the existing resource of 6.3Mt lithium carbonate equivalent.
Environmental Clean Technologies (ASX:ECT) has signed a binding heads of agreement with ESG Agriculture that covers the development and offtake of soil health products using its net-zero emissions COLDry technology. The deal sets initial product volume at 30,000tpa.
Far East Gold (ASX:FEG) has acquired the potentially multi-million ounce Idenburg gold project in Indonesia that is known for high-grade lode gold occurrences characteristic of orogenic gold systems. The company has also appointed Nickel Industries boss and founder Justin Werner as its chairman.
HyTerra (ASX:HYT) has received the green light from regulator the Kansas Corporation Commission to drill a second hydrogen well – Blythe 13-20 – at its flagship Nemaha project. The well is 1,400m east of the historical Scott-1 well that reported 56% hydrogen.
Riversgold’s (ASX:RGL) rock chip sampling has returned up to 21.78% copper and 101g/t gold at its Tambourah project in WA’s Pilbara region. Work has also confirmed the anomalous copper trend across a strike length of 12km.
At Stockhead, we tell it like it is. While Arizona Lithium, Environmental Clean Technologies, Far East Gold, HyTerra and Riversgold are Stockhead advertisers, they did not sponsor this article.
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